In a statement issued on Wednesday, the FBI is looking for anyone who had invested with the now-defunct crypto exchange BitConnect.
The agency is seeking for any willing volunteers to help with investigations it’s conducting involving the platform. Past investors have been advised to reach out by filling out a questionnaire. According to the agency, the responses of the people who were involved will be useful as it investigates the case.
In January 2018 BitConnect closed down its crypto-lending platform following cease and desist orders from North Carolina and Texas securities regulators. The warrant claimed that the company had been engaging in unregistered securities sales by offering its ICO.
This is where the downward spiral began for BitConnect as the platform’s token plunged more than 90 percent in just a few weeks. The price of BCC went from $400 to less than $20. The abrupt loss in value led to several lawsuits from investors who were seeking compensation after they saw their crypto holdings become almost worthless.
In the statement the FBI noted:
“BitConnect guaranteed investors up to a 10 percent total return per month on their investment, following a tiered-investment system based on the sum of an investor’s initial deposit.”
News of the FBI investigating BitConnect surfaced last year in March when Trevon James, who was one of the chief promoters of the platform revealed that the agency had contacted him to gain an understanding of his relationship with the exchange.
At the time he maintained his innocence claiming that he didn’t know anything about BitConnect being a scam.
Another leading figure, Divyesh Darji who was the head of BitConnect India was arrested last August by the Criminal Investigation Department of Gujarat after the country’s immigration agency tipped them.
Now the BitConnect case is running as a single legal effort in the United States.
What’s your take on the latest developments surrounding the BitConnect platform? Share your thoughts in the comment section below.